2020 has highlighted how governments can tighten controls that limit citizens’ ability to relocate, renounce citizenship, or invest abroad. The pandemic‑related shutdown of consular services, combined with new legislative moves, has made it harder for individuals to secure a “plan B” outside their home country.
Travel and Renunciation Obstacles
- U.S. consular delays – Embassies and consulates have stopped offering appointments or repeatedly cancel them, leaving would‑be expatriates unable to complete the paperwork required to renounce U.S. citizenship.
- Renunciation requirements – The process still demands an in‑person appearance, signing forms, and a fee; without a scheduled appointment, the procedure stalls indefinitely.
- Passport issuance – Similar backlogs affect passport offices, meaning even residents who can travel abroad may be unable to obtain a new passport.
These bottlenecks mean that anyone with a single passport faces a de‑facto travel restriction if their government limits outbound movement or delays document processing.
Dual Citizenship as a Risk‑Mitigation Strategy
- Holding two or more passports provides an alternative entry point if the primary citizenship’s country experiences political, economic, or health‑related disruptions.
- Dual citizenship also safeguards against financial pressures such as heightened taxation or asset freezes, because assets can be moved or held under a different jurisdiction.
- Some countries (e.g., Australia) have temporarily barred citizens from leaving, underscoring the value of a secondary nationality.
Vietnam’s New Rule on Overseas Real Estate
A draft decree from Vietnam’s Ministry of Planning and Investment proposes to prohibit individuals from purchasing real estate abroad. The regulation aims to:
- Prevent acquisition of second citizenship – Vietnamese authorities fear that buying property overseas is being used to secure residency or citizenship in other nations.
- Curtail capital outflows – By restricting foreign property purchases, the government hopes to keep domestic capital within Vietnam.
- Limit dual‑citizenship ambitions – The move aligns with a broader trend in some states to discourage or outright ban dual nationality.
The decree specifically targets purchases in countries such as Turkey, Latvia, and other jurisdictions where property ownership can lead to residency permits or citizenship pathways.
Global Context
- Dual‑citizenship restrictions exist in several nations, though the overall trend has been toward greater acceptance. Vietnam’s proposal stands out as a reversal.
- Investment‑related travel – In places like Cambodia, buying property still requires the buyer’s physical presence to register fingerprints on the title, complicating remote investment.
- Banking hurdles – Some banks demand in‑person verification to open accounts, while others accept power‑of‑attorney arrangements; the inconsistency adds another layer of difficulty for cross‑border investors.
Practical Implications
- Plan multiple residencies: Secure at least one additional passport or long‑term visa (e.g., investment‑based visas in the UK, Greece, or other EU states) to maintain mobility.
- Monitor legislative changes: Stay informed about emerging restrictions on foreign property ownership, especially in countries where you hold or intend to acquire assets.
- Prepare documentation early: Anticipate consular delays by scheduling appointments well in advance and keeping copies of all required forms.
- Diversify financial footholds: Use jurisdictions that allow remote account opening or power‑of‑attorney arrangements to reduce reliance on physical presence.
Governments are increasingly using administrative bottlenecks and new laws to limit citizens’ ability to move assets or relocate. Maintaining a diversified set of citizenships, visas, and financial connections is becoming essential for anyone seeking flexibility in an uncertain global environment.
